Update on 2009 Bordeaux

There has been a lot of talk about how well the 2009 Bordeaux vintage is coming along. With the Primeurs just over three months away, I imagine there will be even more talk. Stephane Derenoncourt recently conducted an interview on the topic. Among other things he had this to say:

It’s undoubtedly a great vintage. Now that the fermentations have finished, we can observe very promising balances in the wines. They combine power with fresh fruit aroma, though without much exoticism. It’s always tricky to decide which vintage it resembles most, but the closest to me would be the 1989.

The interview is a quick read, and worth it.

Jane Anson also has some into this vintage. She and Derenoncourt both remind readers that 19.000 hectares of vines were lost to hail in May, which will mean less production than in previous years.

Anson also goes on to speculate about pricing for this vintage, especially if continues to develop as well as it has. Many argue that producers in Bordeaux were slow to drop their prices as the global economy collapsed, but 2007 to some extent, and most definitely 2008 have seen pricing more in line with the economy. The question becomes will producers continue to reduce their pricing, even if the vintage continues to surpass expectations?

I will keep you all posted on additional 2009 Bordeaux reports as I come across them.

2008 Brane-Cantenac Futures

I think Gary Vaynerchuck is way off in his opinion of Bordeaux 2008 futures. I'll go into more detail in a later post, but 2008 looks to have a lot of bargains and, if you have patience, it might be a good year to collect.

I've mentioned before I had the opportunity to barrel taste the 2008 vintage and I thought it was fantastic, even at the young age I tried it. So, as a Christmas gift to myself I purchased a case of 2008 Brane-Cantenac, which is more than I have ever purchased before from the futures market, but at $37.99 a bottle I couldn't pass up the deal.

I want to commend the staff at J.J. Buckley for making the process incredibly easy. I've never ordered from them before, but I have been following Paige on Twitter, so when I was ready she passed me off to Chris who conducted the whole transaction in a matter of minutes.

And, the great thing about buying a case is that they are able to promise me the original wooden container in which the wine will ship!

Now, all I have to do is wait until 2011 to get my wine, and then wait until 2013 or so to drink it :). Good think I have lots of past vintages to help me bide the time. I've also been looking around at potentially picking up some some other deals as well, the problem is I will very quickly run out of space.

Hmmm...the nice people at Vintage Keeper have asked me before if I would be interested in accepting advertising from them, maybe I can trade them an ad for a VP 250 :).

Bordeaux Futures

Panos Kakaviatos has an article in Decanter about supposed American disillusionment with Bordeaux Futures:

Wine merchants will buy 2009 Bordeaux futures, but they say that previous vintages are unsold, the economy is uncertain, the exchange rate unfavourable – and they doubt Robert Parker can score it higher than 2008 anyway.

Michael Glasby of the American retailer Premier Cru in California predicts that 2009 Bordeaux wines will have to 'fight for their place more fiercely than all the previous "vintages of the century".'

I know I am not a typical wine consumer, but I like the futures system and usually try to take advantage of it. This is a great way to pick up deals on what will undoubtedly be good vintages. In particular, I think there are some really good deals amongst the 2008 futures.

Let me illustrate with one of my favorites, Chateau Brane Cantenac. The 2005 vintage is going for about $100 a bottle. The 2006 vintage, which has only recently started hitting stores in the United States goes for about $70 a bottle. This make sense as the 2006 vintage was not as good as the 2005.

I had the chance to do a barrel tasting of the 2008 vintage while I was in Bordeaux, and I agree with Parker that it is a very complex, classic Bordeaux. Right now, futures for the 2008 vintage are available for around $38. That is a great deal for a wine that will probably retail for double that.

Of course there is risk with futures, just as there is with any investment. You have to rely that the company you purchase your futures from to be around in 2011 when the wine is finally delivered and if you are investor, not a drinker, you have to hope that the wine does increase in value. But, Bordeaux futures have been a strong investment for many years, if you have the money, an investment in futures almost always pays off.

Bordeaux futures week recently passed. For those of you who could not be there in person JJ Buckley has a great video blog. Check it out.